HomeMy Public PortalAboutBrewster 2015 Public Schools Audit TOWN OF BREWSTER, MASSACHUSETTS
BREWSTER PUBLIC SCHOOLS
INDEPENDENT ACCOUNTANTS ' REPORT
ON APPLYING AGREED -UPON PROCEDURES
YEAR ENDED JUNE 30 , 2015
TOWN OF BREWSTER , MASSACHUSETTS
BREWSTER PUBLIC SCHOOLS
JUNE 30 , 2015
CONTENTS
PAGE
Independent Accountants ' Report on Applying Agreed- Upon Procedures 1
Specific Compliance Requirements 2 - 6
Findings and Recommendations 7 - 9
R. E . BROWN & COMPANY
CF RTB+II;D PUBLIC ACCOUNTANTS
P.O. Box 230 - 25 CF114TERY STREET
Mendon, Massachusetts 01756
Phone : (508) 478-3941 Fax (508) 4784779
INDEPENDENT ACCOUNTANTS ' REPORT
ON APPLYING AGREED -UPON PROCEDURES
To the Honorable Members of the School Committee
And the Honorable Board of Selectmen
Town of Brewster, Massachusetts
We have performed the procedures enumerated in the attached appendix, which were agreed to
by the management of the Town of Brewster, Massachusetts (the ' Town ') and the Brewster
Public Schools, solely to assist you in evaluating the completeness and accuracy of the Town' s
Massachusetts Department of Elementary and Secondary Education (the "Department ") En& of-
Year Financial Report for the year ended June 30, 2015 , and to demonstrate the Town' s
compliance with the requirements for preparing that report as specified by the Department. The
Town of Brewster and the Brewster Public Schools' management is responsible for the En& of-
Year Financial Report for the year ended June 30 , 2015 . This agreed- upon procedures
engagement was performed in accordance with attestation standards established by the American
Institute of Certified Public Accountants. The sufficiency of these procedures is solely the
responsibility of the specified users of the report. Consequently, we make no representation
regarding the sufficiency of the procedures described in the accompanying appendix that follows
either for the purpose for which this report has been requested or for any other purpose .
We were not engaged to, and did not conduct an audit, the objective of which would be the
expression of an opinion on the completeness and accuracy of the En& of-- Year Financial Report
filed with the Department. Accordingly, we do not express such an opinion. Had we performed
additional procedures, other matters might have come to our attention that would have been
reported to you.
This report is intended solely for the information and use of the specified parties listed above and
is not intended to be and should not be used by anyone other than those specified parties.
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Certified Public Accountants
July 14 , 2016
SPECIFIC COMPLIANCE REQUIREMENTS
Schedule 1 - Revenue & Expenditure Summary
I. Revenues
A. Revenue from Local Sources
1 . Trace Revenues from Local Sources reported on Schedule 1 to the
municipal and district accounting ledgers . Also , trace the revenues
reported on district' s accounting ledgers to revenues reported on Schedule
1 . These amounts should agree .
C , D, and E. Revenues from Federal Grants, State Grants and Revolving &
Special Funds
2 . Trace the revenue from state aid, federal grants , state grants, and revolving
and special funds to the detail in District' s accounting ledgers . Also , trace
the revenues reported on district' s accounting ledgers to revenues reported
on Schedule 1 . These amounts should agree with the possible exception of
revenue from state aid, federal grants and state grants, which are entered
by the State based on allotments . Determine if the district verified the
grant amounts received with the detail posted on the DESE website
and pre -populated by DESE .
Note : Amounts deposited in legally authorized revolving accounts (e . g.
School Choice ) cannot be transferred to the General Fund.
II. Expenditures
A. By School Committee and B . By City or Town
3 . Trace the amounts reported for general fund education expenditures from
Schedule 1 line 1850 to the municipal accounting ledgers and to the
district accounting ledgers . Also trace the expenditures reported on
district' s accounting ledgers to expenditures reported on Schedule 1 . These
amounts should agree . If a "crosswalk " exists between the accounting
ledgers and the EOYR, verify that the crosswalk agrees with the
accounting ledgers in total and trace a sample of expenditures fivom the
crosswalk to the accounting ledger .
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SPECIFIC COMPLIANCE REQUIREMENTS
4 . Trace the amounts reported for a sample of ESE functions (i. e . teaching,
principal), State Objects (i. e . professional salaries (01 ) , other salaries (02),
and other expenditures (04 - 06) and ESE programs (i. e . regular day, SPED,
etc . ) in Schedule 1 to the detail in the accounting ledgers or to the
crosswalk, if applicable . These amounts should agree .
5 . Test Extraordinary Maintenance expenditures for the following (4300) :
Verify that expenditures do not include salaries . Verify that the
expenditures include applicable principal portions of a loan or the cost of a
lease/purchase agreement. Verify that expenditures, classified as
Extraordinary Maintenance (4300) do not exceed the per project dollar
limit for extraordinary maintenance ($ 150 , 000) . Trace the expenditures to
the detail in the accounting ledgers .
6 . Determine how expenditures for fringe benefits are assigned or allocated
to Schedule 1 Employee Benefits " Insurance (5100 , 5200) . Trace the
reported cost to the detail in the accounting ledgers using the methodology
indicated . These amounts should agree . Determine if the district
reported Insurance for Retired Employees (5260) separately and
appropriately.
7 . Verify that expenditures charged to Line(s) 1683 and 2060 - Short- term
Interest (5400) relate exclusively to Revenue Anticipation Notes (RAN ' s) .
8 . Verify that expenditures charged to Line 1684 and 2065 - Short- term
Interest - BAN ' s (5450) relate exclusively to Bond Anticipation Notes
(BAN ' s) •
9 . Identify expenditures reported as long- term School Construction debt for
principal ( 8100) and interest ( 8200) . Verify that bond anticipation notes
are not included in these functions . Trace the reported costs to the
Treasurer' s debt schedule . Trace the reported amount to the detail in the
accounting ledgers . These amounts should agree . NOTE : If the district
received a lump sum wait list or progress payment from the Mass .
School Building Authority, verify that the revenue was reported on
line 130 and that expenses were reported for paydown of principal
(8100) , or Purchase of Land and Buildings (7100 ,7200) if applicable .
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SPECIFIC COMPLIANCE REQUIREMENTS
10 . Trace the expenditures for tuition payments : to other school districts in
state (9100), to out of state schools (9200) , to non- public schools (9300),
to member collaboratives (9400 ), and assessments to member regional
school districts (9500 ) to the detail in the accounting ledgers . These
amounts should agree . NOTE: If the district prepaid FYI 6 Special
Education Tuition, verify prepaid tuition was not included as an FYI 5
expense . If the district prepaid FYI 5 tuition from FYI 4 , that amount
should be included as an FYI 5 expense .
11 . For municipal expenditures that result in services directly related to the
school committee :
a . Obtain a copy of a written agreement between the School
Committee and Municipal officials documenting agreed upon
methodologies to be used when allocating, distributing or
assigning Municipal expenditures to the District.
b . Test the amounts reported using the documented methodology.
These amounts should agree .
12 . Expenditures fi4om Federal Grants, State Grants and Special Funds
a . Determine amounts reported in Column 1 by expenditure
classification agree with filed Final Grant Expenditure reports for
SFSF and Ed Jobs grants .
b . Trace amounts claimed as Circuit Breaker expenses on line 3080
Column 5 to the Accounting ledgers or journals .
Schedule 3
13 , For Schedule 3 expenditures :
a . Trace the amounts reported by school location on the linked file to
the accounting ledgers . These amounts should agree .
b . If staff, is assigned to more than one school, determine if the
District maintains a payroll system or spreadsheet to document the
assignment of staff salaries by school location.
c . If allocations are used to assign staff salaries to schools, programs,
functions or objects, was the allocation supported by a documented
methodology?
I
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SPECIFIC COMPLIANCE REQUIREMENTS
d . If allocations are used for non- salary expenditures, determine if the
District maintains a documented methodology for consistency in
application. Allocations are acceptable on Schedule 3 for non-
salary expenditures although direct assignment or charging is
preferable .
Schedule 4
14 . Ascertain the methodology used to allocate, distribute or assign SPED
costs to the placement on Schedule 4 and review the propriety of the
methodology. Test the amounts reported on Schedule 4 using this
methodology. These amounts should agree .
Schedule 7
15 . Trace the transportation expenditures reported on Schedule 7 to the
transportation expenditures reported on Schedule 1 . These amounts should
agree . Determine the methodology used to allocate transportation
expenditures on Schedule 7 and verify the accuracy of the allocations .
Also if applicable, verify that reimbursable expenditures have been
reduced by transportation revenue received from students transported .
16 . Trace the pupils reported on Schedule 7 to the detailed transportation
records and verify that the amounts reported on Schedule 7 are accurate
and consistent with the detailed records .
17 . Determine if the district' s accounting system separates costs in order to
facilitate reporting as outlined in Schedule 7 (In or Out of District, Pre-
School, Non- Public, School Choice & Charter School) . Determine if
reimbursable expenditures claimed on Line 4283 (Homeless from Outside
the District) and Line 4285 (Homeless to Outside the District) are
supported by adequate documentation. If a cost allocation plan was used to
determine reimbursable expenditures, review the propriety of the plan and
test the expenditures reported .
Schedule 19
9i
a
18 . Determine if the School District has reported all changes to Schedule 19
Part A . 1 - Appropriation by School Committee to the ESE . Compare the
final School Committee Appropriation to Schedule 19 Part A. 1 as
filed/amended to determine if all changes were reported .
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SPECIFIC COMPLIANCE REQUIREMENTS
19 . Determine amounts budgeted in Schedule 19 Part A. 2 are consistent with
methodologies outlined in the agreement noted in procedure II A . 4a .
above .
20 . Determine that retiree health insurance (5250) is reported separately.
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FINDINGS AND RECOMMENDATIONS
1 . Finding: Schedule 1 — requirement 2 — In our review of Schedule 1 Revenue for State Aid,
Federal Grants, State Grants, and Revolving and Special Funds as compared to the detail in
the School Department' s accounting ledgers, we noted that the Revenue reported on line 630
Tuition Receipts- School Choice column 2 (Special Education) in the amount of $ 55 , 157 was
reported on the wrong line . This amount should have been reported on line 640 Tuition
Receipts- Other column 2 (Special Education) . Thus line 630 column 2 (Special Education)
should have been $ 0 , and line 640 column 2 (Special Education) should have been $ 55 , 157 .
Criteria:
• All revenues from State Aid , Federal Grants, State Grants, and Revolving and
Special Funds received for the benefit of the School Department should be reported
on the proper lines and columns in the Revenue section of the End of Year Financial
Report.
Recommendation :
• We recommend that the Brewster School Department report all State Aid, Federal
Grants, State Grants, and Revolving and Special Funds revenue as recorded in the
School Department' s accounting ledgers on the proper lines and columns in the
Revenue section of the End of Year Financial Report,
Response: We agree with the finding and will be careful in the future.
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FINDINGS AND RECOMMENDATIONS
2 . Finding: Schedule 1 — requirement 3 — In our review of the crosswalk between Schedule 1
School Committee total expenditures (line 1850) to the detail in the School Department' s and
the Municipality s accounting ledgers, we noted that the amount reported as Purchase of
Lands and Buildings (7100 & 7200) line 2100 column 5 (Undistributed) was overstated by
$ 3 , 256 , 753 . The total amount on line 2100 column 5 should have been $ 0 not $ 3 ,256 , 753 as
reported . This construction project will be funded 100 % by bonds .
Criteria.
• The amount reported as Purchase of Lands and Buildings (7100 & 7200 ) should only
include MSBA progress payments or expenditures paid for by local appropriations .
Recontntendation :
• We recommend that the Municipality report only the expenditures that are o $set by
MSBA Progress payments or expenditures paid for by local appropriations .
Response: On future reports, the Town will report the Principal & Interest on Bonds
for this completed project.
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FINDINGS AND RECOMMENDATIONS
3. Finding: Schedule 1 — requirement 8 — In our review of the Municipal expenditures for
Short Term Interest BANS on line 2065 column 5 (Undistributed ) we noted that the
amount reported as BAN Interest for $ 0 was reported in error. The Town of Brewster paid
BAN Interest in the amount of $ 9, 286 for the fiscal year 2015 . Thus line 2065 Column 5
(Undistributed ) should have been $ 9 , 286 , not $ 0 as reported .
Criteria: The amount to be reported for Short Term Interest BANS should agree to the
amount as recorded in the Municipality' s accounting ledger.
Reconznrendationr We recommend that the Municipality report all Short Term Interest
BANS as recorded in the Municipality' s accounting ledger on Schedule 1 .
Response: The Town will report all Short Terni Interest on BANS on Schedule 1.
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